Our largest supplier in each year of the Track Record Period, Supplier A, is a PRC related entity of this U.S. genetic sequencing provider.
Business · p. 159
During the Track Record Period, our procurement from Supplier A amounted to RMB78.1 million, RMB113.0 million and RMB112.2 million in 2023, 2024 and 2025, respectively.
Business · p. 159
After consulting with our PRC Legal Advisor, our Directors believe that our procurement of raw materials and sequencing equipment components from Supplier A will not be affected by the Sanction, as our procurement merely constitutes domestic trade.
During the Track Record Period, purchases from our five largest suppliers in each period amounted to RMB1,670.9 million, RMB2,602.4 million, and RMB4,289.1 million, respectively, representing 17.0%, 22.7%, and 30.7% of our total purchases, respectively.
Business · p. 164
We implement a multi-supplier strategy for critical materials, maintaining primary and backup supplier relationships to reduce single supplier dependency risks.
Business · p. 162
We actively pursue domestic sourcing of imported materials, particularly in optical components (for the optical modules and connectivity solutions segment) and laser chips (for the laser processing equipment and intelligent manufacturing segment), to reduce exposure to any international trade disruptions.
In 2023, 2024 and 2025, purchases from our five largest suppliers in each year during the Track Record Period amounted to RMB1,975.3 million, RMB2,428.2 million and RMB5,658.0 million, accounting for 31.4%, 29.3% and 45.2% of our total purchases.
Business · p. 139
Our suppliers are mainly suppliers of raw materials and equipment. We have established and maintain stable, long-term and sustainable relationships with these major suppliers.
Business · p. 138
We have adopted a multi-tiered supplier risk management framework to ensure the safety, reliability and sustainability of our supply chain.
In each period during 2023, 2024 and 2025, purchases from our five largest suppliers in each period amounted to RMB119.8 million, RMB198.7 million and RMB197.2 million, respectively, which accounted for 29.2%, 33.8% and 29.3% of our total purchases for the corresponding periods, respectively.
Summary · p. 6
In each period during 2023, 2024 and 2025, purchases from our largest supplier in each period amounted to RMB32.6 million, RMB76.2 million and RMB61.7 million, respectively, which accounted for 7.9%, 13.0% and 9.2% of our total purchases for the corresponding periods, respectively.
Business · p. 158
We have established a set of internal measures on selection of suppliers.
In 2023, 2024 and 2025, purchases from our five largest suppliers amounted to RMB4,524.2 million, RMB8,112.4 million and RMB10,541.4 million, respectively, accounting for 28.8%, 39.1% and 41.1% of our total purchases in the respective periods.
Business · p. 132
Our suppliers are mainly providers of chips, display modules, PCBA and various electronics components. We have established and maintain stable and long-term relationships with these major suppliers.
Summary · p. 4
We have established rigorous processes for the selection, evaluation and management of our suppliers to ensure suppliers meet our quality and performance standards.
Purchases from our five largest suppliers in each year during the Track Record Period amounted to RMB283.5 million, RMB301.6 million and RMB347.3 million for the years ended December 31, 2023, 2024 and 2025, respectively, representing 23.8%, 26.0% and 27.0% of our total purchases for the same year.
Summary · p. 5
Purchases from our largest suppliers in each year during the Track Record Period amounted to RMB89.4 million, RMB130.9 million and RMB180.5 million for the years ended December 31, 2023, 2024 and 2025, respectively, representing 7.5%, 11.3%, and 14.0% of our total purchases for the same year.
Business · p. 164
We maintain a diversified procurement strategy that balances internal production with external sourcing to ensure supply chain resilience and mitigate over-reliance on any single source.
In addition, purchases from our largest supplier amounted to RMB1,776.8 million, RMB1,844.7 million and RMB2,374.2 million, respectively, representing 54.6%, 49.8% and 41.6% of our total purchases in 2023, 2024 and 2025, respectively.
Summary · p. 3
According to Frost & Sullivan, it is in line with industry practice for IC design companies to rely on a limited number of foundry partners to ensure consistent quality products and centralized management of manufacturing demands.
Business · p. 145
Our Directors are of the view that our relationship with Supplier A is unlikely to materially adversely change or terminate, because (i) we have maintained a long-term and stable collaboration relationship with Supplier A, and (ii) during the Track Record Period and up to the Latest Practicable Date, we did not have any disputes with Supplier A.
However, the raw material for demineralized goat/sheep whey powder, whey liquid from goat/sheep milk, is a derivative product of cheese production and can only be sourced reliably in regions with large-scale goat/sheep cheese industries, such as Spain.
Business · p. 167
In 2018, we acquired a local whey processing facility.
Business · p. 167
Notably, the raw material for demineralized goat/sheep whey powder, whey liquid from goat/sheep milk, is a derivative product of cheese production and can only be sourced reliably in regions with large-scale goat/sheep cheese industries, such as Spain.
In each of the years ended December 31, 2023, 2024 and 2025, purchases from our five largest suppliers accounted for 54.7%, 54.4% and 61.5% of our total purchase amount, respectively; purchases from our single largest supplier accounted for 29.4%, 35.5% and 34.8% of our total purchase amount, respectively.
Summary · p. 4
In each of the years ended December 31, 2023, 2024 and 2025, purchases from our five largest suppliers amounted to RMB407.8 million, RMB785.3 million and RMB1,471.8 million, representing 54.7%, 54.4% and 61.5%, of our total purchase amount, respectively; purchases from our single largest supplier amounted to RMB218.8 million, RMB512.3 million and RMB832.9 million, representing 29.4%, 35.5% and 34.8% of our total purchase amount, respectively.
Business · p. 114
Moreover, our procurement department collaborates closely with our R&D team to seek alternative solutions and optimize product structure, reducing reliance on single suppliers and enhancing supply chain flexibility and resilience.
In 2023, 2024 and 2025, purchases from our five largest supplier accounted for approximately 30.9%, 34.1% and 51.5% of our total purchases for each of the same periods, respectively, and purchases from our largest suppliers accounted for approximately 9.3%, 8.4% and 19.6% of our total purchases for the same periods, respectively.
Summary · p. 4
Our five largest suppliers accounted for approximately 30.9%, 34.1% and 51.5% of our total purchases for each of the same periods, respectively.
The purchases from our top five suppliers in each year for the three years ended December 31, 2025, amounted to approximately RMB240.5 million, RMB120.6 million and RMB274.7 million, representing approximately 74.7%, 63.7% and 70.5% of our total purchase amount for the respective periods.
Summary · p. 4
Nevertheless, to mitigate our risks exposure to any material adverse changes to, or termination of, the relationship with Tower, we have been cooperating with DB HiTek since late 2022, with several products already in stable mass production.
Business · p. 141
Over the Track Record Period, we continued to procure from both the Israel and Japan wafer fabrication plants of Supplier Group A, with approximately 81.7% of the total number of dies purchased from Supplier Group A during the Track Record Period from its Japan plant.
During each year of the Track Record Period, the aggregate purchase amounts from the five largest suppliers set out above were RMB83.0 million, RMB119.5 million, and RMB372.2 million, representing 19.6%, 22.8%, and 32.2% of our total purchase amount from suppliers associated with our cost items, respectively.
Business · p. 152
Our Directors confirmed that, during the Track Record Period, we have not experienced fluctuations in prices set by our suppliers, breach of contract on the part of our suppliers or delay in delivery of our orders from our suppliers that, in each case, have had a material adverse effect on our business operations.
Business · p. 152
Through standardized management processes and coordination mechanisms, we enhance supply chain transparency and responsiveness, while reducing reliance on any single supplier.
For the years ended December 31, 2024 and 2025, purchases from our top five suppliers in aggregate amounted to approximately RMB1.4 million and RMB2.1 million, representing 52.5% and 52.3% of our total purchases, respectively, and purchases from our largest supplier for each year/period of the Track Record Period amounted to RMB0.4 million and RMB0.6 million, representing 15.9% and 15.8% of our total purchases for the same periods, respectively.
Business · p. 168
We primarily use a limited number of suppliers for our principal raw materials, although there are alternate suppliers available for most of such materials.
Purchases from our five largest suppliers in each year during the Track Record Period amounted to RMB954.4 million, RMB1,063.9 million and RMB1,247.9 million in 2023, 2024 and 2025, respectively, representing 29.0%, 29.1% and 30.2% of our total purchases for the same respective year.
Summary · p. 3
To mitigate risks such as supply shortages or price fluctuations, we source key materials from multiple suppliers and seek long-term partnerships to ensure stable and reasonably priced supply.
Business · p. 141
All of our five largest suppliers in each year during the Track Record Period were Independent Third Parties.
Purchase from our five largest suppliers in each year during the Track Record Period without taking into consideration of purchase rebate we received or expected to receive in respect of the corresponding year amounted to RMB56.0 million, RMB53.2 million and RMB50.7 million for the years ended 31 December 2023, 2024 and 2025, respectively, representing approximately 43.9%, 46.0% and 45.5% of our total purchases without taking into consideration of purchase rebate we received or expected to receive in respect of the corresponding year for the same year, respectively, with our largest single supplier representing 12.5%, 14.2% and 13.7% for the same years.
Business · p. 147
We have maintained long-term, continuous business relationships with our top five key suppliers during the Track Record Period, on average we have worked with our top five suppliers for over ten years, which underscores mutual reliability and our supply stability.
Business · p. 148
To ensure supply chain resilience and competitive pricing, we deliberately engage multiple qualified suppliers for each major product category, such as metal frames and standard lens types.
Our five largest suppliers in each year during the Track Record Period accounted for approximately 77.9%, 83.0% and 75.8% of our total purchase in the respective years; and our largest supplier in each year during the Track Record Period accounted for approximately 61.6%, 65.3% and 55.4% of our total purchase in the respective year.
Business · p. 156
During the Track Record Period, our cost paid to Shanghai Gold Exchange through Company Y amounted to RMB2,412.1 million, RMB2,969.1 million and RMB4,406.5 million for FY2023, FY2024 and FY2025, respectively, representing 61.6%, 65.3% and 55.4% of our total purchase in the corresponding period.
Business · p. 150
In the event of a disruption in our procurement of gold from the member of Shanghai Gold Exchange, given that gold is a commonly traded commodity, our Directors are of the view that we can shift to other procurement sources.
Purchases from our five largest suppliers in each year of the Track Record Period accounted for 71.8%, 39.4% and 36.8% of our total purchases for the years ended December 31, 2023, 2024 and 2025, respectively.
Business · p. 124
As our new energy lithium materials business accounts for a significant portion of our raw material procurement, our largest suppliers are generally raw material suppliers to this segment.
Business · p. 123
To enhance supply security and reduce our exposure to raw material price fluctuations, we have been actively building up our upstream lithium resource base through a combination of equity investments, long-term offtake arrangements and self-operated mining projects.
During the Track Record Period, we experienced a high level of supplier concentration.
Business · p. 134
Supplier E contributed to 0.6%, 0.0% and 0.3% of our revenue in 2023, 2024 and 2025, respectively, and 3.9%, 31.8%, and 41.1% of our purchase amounts in the same years.
Business · p. 139
Throughout our business operations, we have maintained strong and stable relationships with our suppliers, which has enabled us to secure more favorable terms and maintain a healthy level of bargaining power.
Purchases from our five largest suppliers in each year of the Track Record Period amounted to RMB189.5 million, RMB123.0 million and RMB198.7 million, representing 35.3%, 22.4% and 31.0% of our total purchases for the years ended December 31, 2023, 2024 and 2025, respectively.
Business · p. 170
We believe we have sufficient alternative suppliers for our business that can provide us with substitutes of comparable quality and prices.
For the years ended December 31, 2024 and 2025, our purchases from our five largest suppliers in each period in aggregate accounted for 59.9% and 44.1% of our total purchases for the respective period. Our purchases from our largest supplier in each period accounted for 39.6% and 33.0% of our total purchases for the respective period.
Business · p. 207
To monitor the quality of supplies, we implement rigorous supplier qualification and selection standards. We have established a comprehensive supplier management policy, and maintain yearly procurement plans.
Business · p. 208
(i) all of our five largest suppliers for each period during the Track Record Period are Independent Third Parties, and (ii) none of our Directors, their respective associates or any shareholder who owned more than 5% of our issued share capital as of the Latest Practicable Date has any interest in any of our five largest suppliers for each period during the Track Record Period.